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FCC Chair willing to consecrate XM-Sirius union

The Chair of the Federal Communications Commission has announced that he will ask the agency to approve the merger of Sirius and XM satellite radio. "On balance, this transaction would be in the public interest," Kevin Martin said on Sunday.

It is unclear, however, whether Martin enjoys the three-commissioner majority necessary to release an Order blessing the marriage. An FCC staff source told Ars Technica this morning that Martin felt this was the "right time to begin the discussion" with his colleagues. He has distributed to them a list of merger conditions to which Sirius and XM have agreed. Here is the list:

Something for everyone...

Price caps: The companies have pledged not to raise prices for a minimum of three years after the merger.

À la carte: The merged services will offer smaller packages and lower prices. And, as Ars has reported, they would include "à la carte"-style packages in which consumers can pick and choose channels. These deals will be available within three months after the Commission approves the merger. Newly available radios will be marketed in tandem with these a la carte offerings.

An open standard: Any developer will be able to make receivers for the merged company and market them. Key representatives in Congress asked for this condition in May.

Interoperable radios: Sirius and XM promise to roll out an interoperable receiver within one year of the merger—that is, a receiver compatible with both services. Critics of the proposed merger have repeatedly condemned the two companies for their unwillingness to roll out an interoperable receiver yet.

Public interest channels: Four percent of the merged entities' channels will be made available to non-commercial fare and four percent for broadcasters "who have not been traditionally represented," in Martin's words. The first condition has come from a variety of public interest groups. Something like the second condition has come from the Georgetown Partners group.

Sirius will expand its service to Puerto Rico following the merger. Puerto Rico's representative in Congress told the FCC early this year that he would oppose the proposed union until satellite radio service could be accessed by Commonwealth residents.

...well, almost everyone

It is worth noting what Sirius and XM appear not to have agreed to, most notably Clear Channel's proposal that they obey the FCC's terrestrial radio indecency rules. Nor did Clear Channel get a requirement that the merged company embed HD radio reception capability into all satellite radio receivers. Various parties also proposed that the merged entity give up some spectrum for auction. That didn't make this list of voluntary commitments either.

It is also unclear whether the "open standard" condition will include a proviso that satellite radio manufacturers can add features connecting to other services, mp3 players, or broadband connections.

Our source told us that Martin hopes to forge an agreement on these conditions with at least two of his colleagues some time between now and the agency's Open Commission meeting scheduled for July. The Commission has not picked a specific date for the meeting yet.

"Nobody should think the game is over," predicts Public Knowledges' Gigi Sohn. "Indeed, it is just starting. The Chairman needs two more votes. Democratic Commissioners [Michael] Copps and [Jonathan] Adelstein are likely to be circumspect, if not outright opposed. And Republican Commissioners, particularly Commissioner Robert McDowell, are likely to want fewer, or no conditions. So stay tuned."

Matthew Lasar
Matt writes for Ars Technica about media/technology history, intellectual property, the FCC, or the Internet in general. He teaches United States history and politics at the University of California at Santa Cruz. Emailmatthew.lasar@arstechnica.com//Twitter@matthewlasar